I'm more worried about the collapse of humanity a la idocracy. The model collapse might just be secondary. Even just conversing on HN, that's the vibe I feel we're headed towards. Or, perhaps, I'm just running into more and more posters that have financial ties to the success of LLMs.
Model collapse is an induced phenomenon, not something you'll ever see in practice. Of course naive predictions of an impending 'collapse' go back to at least GPT-3 (that's over 6 years ago), yet models continue to get smarter. And speaking of predictions, I assume you've been saying that AI is "fake" for just as long?
I use AI for coding regularly. It's not fake. Just most aspects outside of the coding are looking to be a net negative on humanity if we think comprehensive and critical thinking are positive aspects of the human condition.